Beginners who have no experience in online trading might find it difficult to which aspects to pay attention when comparing two brokerage services because there is a lot of information to examine in 2022. In this guide, we will try to reveal the most relevant details of two online brokers – DotBig LTD and FOREX.com.
|Bonus||10% welcome bonus||20% welcome bonus up to $5,000|
|Year of foundation||2003||2001|
|Platforms||MT5, DotBig Web, Mobile||Web Trader, MT4, MT5, Meta Trader Mobile|
When making a broker comparison, inexperienced users might often omit fees and commissions. But in fact, their impact is very important. Your expenditures depend not only on your losses but on many other aspects, including trading and non-trading fees. And if you want to decrease expenses to the maximum extent, you must consider them.
To open an online trading account on DotBig, you have to fund not less than $250. The deposit commissions aren’t charged. However, you will be required to pay a fee when making a withdrawal of your profit. The commission amounts to 3.5%. As for bank transfers, each transaction will cost €35. Additionally, the broker fines inactive participants.
These are non-trading fees imposed by DotBig LTD. The company doesn’t charge additional payments for access to tradable products and markets. They have spreads but no trading fees.
Similar to DotBig, its today’s competitor doesn’t charge additional money for trading because the fees are built-in spreads. The company has relatively low spreads for Forex. On average, they don’t exceed 1.3 pips. However, it’s reported that the broker has high stock CFD spreads.
One advantage of FOREX.com in this broker comparison with DotBig is that FOREX.com doesn’t have transaction commissions at all. The inactivity fees are clearly defined here – $15 per month after one year of inactivity.
Comparison of forex brokers must display how different trading conditions and tradable assets of brokers are.
|Financial Markets||DotBig LTD||FOREX.com|
|Forex||72 currency pairs||91 currency pairs|
|Stocks||244 stocks||no real stocks to trade|
|Cryptocurrencies||650 cryptocurrencies||6 cryptocurrencies|
|Commodities||6 commodities with the 1:100 leverage||no real commodities to trade|
|Indices||13||no real indices to trade|
|ETFs||Free ETF trades with 20 assets listed||20 ETF CFDs, but no real ETFs|
|CFDs||The possibility to invest in CFD assets||Over 9,000 CFDs|
As it is displayed on the table above, FOREX.com doesn’t display real products from some markets. Instead, it displays CFDs. However, that’s not the choice of beginners. Even experienced traders suffer severe losses when working with these assets because these are high-risk financial instruments. Many market participants report losing their funds when speculating with FOREX.com due of the complexity of the instruments.
The leverages on FOREX.com vary from 2:1 to 20:1 for some Forex and gold. As for DotBig, the leverage of 1:100 is the highest points for commodities, while for Forex – 1:400. Both brokers don’t allow manual adjustments of leverages, which is a disadvantage because it means a trader doesn’t have the possibility to decrease the risk of deals.
Although FOREX.com is thought to be a completely secure company due to the licenses from top-tier regulatory bodies such as FCA, it cannot provide a two-step login. DotBig, on the contrary, has a very strict verification procedure, which might be even time-consuming.
The web-based platform of FOREX.com is highly praised for its extensive customization. Traders easily add or remove positions, and open and close new deals. Also, traders can access different types of orders. The platform has a very extensive selection of search functions. It also provides portfolio and fees notifications.
DotBig Web is also appreciated for its high level of platform usability. Users can use a wide selection of trading tools such as charts and quotes. DotBig isn’t the best option for making research – you have to look for news on other resources. However, DotBig is one of the best options for automated trading thanks to robust signals and social trading possibilities.
Which Broker is Better Overall?
In conclusion to this comparison of online brokers, we would like to say that DotBig is a preferable option for newbies. It has better automated trading solutions, offers a more extensive list of tradable products, and provides the possibility to trade non-high-risk instruments.